The global energy crisis and the immediate need for energy responsibility are among the most important and urgent issues facing society today. The impact of human activities in increasing the emission of harmful greenhouse gases (CO2e), and the resulting repercussions of global climate change is a crucial issue jeopardizing U.S. national security, as well as global stability. It is now more imperative than ever that the global community works together to assess and implement solutions to this crisis in a thoughtful and efficient manner.
According to the United States Department of Energy (DOE), energy consumption by residential consumers registered over $225 billion for calendar year 2006, representing roughly 20% of the total United States energy spending, or 5% of global energy demand. This residential energy consumption represents 21 quadrillion British Thermal Units (BTUs) each year, and results in the emission of approximately 1.2 billion metric tons of greenhouse gas (CO2e) (FIG. 1 illustrates the breakdown of energy usage in the United States by segment and an estimate of energy reduction potential in the residential sector). On Apr. 17, 2009, the United States Environmental Protection Agency (EPA) issued a report that included findings highlighting the impact of greenhouse gases, indicating that the continued proliferation of greenhouse-gas emissions “endangers public health and welfare.” The EPA said in its findings that, “in both magnitude and probability, climate change is an enormous problem.” The EPA had previously reported in its “Inventory of U.S. Gas Emissions and Sinks: 1990-2007,” that in the period of 1990 through 2007, emission of carbon dioxide, the principal greenhouse gas emitted from energy generation, rose over 20%.
In its Apr. 17, 2009 report, the EPA concluded that the science pointing to man-made “pollution” as the cause of global warming is “compelling and overwhelming.” FIG. 2 of the present disclosure provides a visual depiction of the projected increase in U.S. residential energy consumption, along with the projected increase in CO2e emissions, both emphatically depicting the need for improved energy efficiency and CO2e reduction. It should also be noted that this increased energy consumption will likely translate into an associated increase in energy costs to consumers, as depicted in FIG. 3 of the present disclosure, which may put additional strain on consumer's budgets.
The current and prospective environmental impact of this residential energy usage is staggering, contributing greatly to the exacerbation of CO2e emissions and the harmful effects of climate change. While the issue is formidable, there is an important and urgent opportunity to provide residential energy consumers with the right set of tools to capitalize on home upgrades that provide for more efficient consumption of energy. Today, there are numerous product-based and/or service-based solutions that are available to consumers to reduce their energy usage, thereby generating cost savings to the consumer, and simultaneously reducing their negative impact on the environment by abating harmful greenhouse-gas emissions associated with energy generation and consumption. This reduction in energy usage can be significant with a potential reduction of 30% for the average homeowner. Many of these home upgrades offer an attractive financial return, as measured by a variety of financial metrics including the Internal Rate of Return (IRR), Return on Investment (ROI) and Payback Period. (FIG. 5 provides a study performed by McKinsey & Company in July 2009 measuring energy-reduction opportunities.)
With the significant opportunities available to consumers to reduce their energy usage and associated energy costs, and substantially limit the harmful impact of their energy usage on the environment, it is warranted to ask the very relevant question that the inventors have spent considerable time analyzing; “Why don't consumers take action and capitalize on these opportunities?”
Five principal barriers that may contribute to inaction on the part of consumers are:    (i) Lack of consumer “mind share”: There is a general lack of consumer education and awareness with regard to energy efficiency and renewable-energy alternatives. Many consumers are unaware of the energy-saving home upgrades that are available to them, and/or are unaware of the incentives (federal, state, local tax incentives, etc.) that are available to them to make these upgrades;    (ii) Assistance in prioritizing upgrades: Even if consumers are aware of available upgrades and incentives, they often struggle to prioritize these upgrades and assess the optimal upgrades for their specific circumstance. This includes analyzing the upgrade cost (net of incentives) versus the post-upgrade benefits (measured using a number of financial metrics including ROI, IRR, and Payback Period);    (iii) Upfront costs: The upfront costs associated with home upgrades can often be an impediment to capturing these energy-saving opportunities. While future savings are attractive, the upfront costs to perform upgrades can be a significant deterrent. Additionally, the cost of an in-person energy audit from a trained professional can also present additional upfront costs to the consumer and act as a deterrent;    (iv) Uncertainty in “value translation”: Consumers are often concerned about whether the upgrades that they perform to reduce their home's energy usage/bills will also increase the value of their home. Many energy-saving home upgrades are less transparent than other home renovations. This lack of transparency and concern over whether such upgrades will increase the home's value can cause inaction or compel the consumer to focus on upgrades that are more cosmetically noticeable but that produce less attractive financial and environment impact; and    (v) Overall complexity of the process: The process of assessing, implementing, and financing energy-saving home upgrades can be an imposing task for a consumer. The upgrade implementation process alone can require researching, selecting and shopping for multiple products, and/or identifying and researching multiple service professionals to perform desired service-based upgrades. This complexity often proves to be a significant barrier for consumers.
The present disclosure addresses these barriers, as well as others, making energy responsibility more easily and readily attainable for residential energy consumers.